The green homes market in the US is expected to rise five-fold over the next five years, growing from $17bn in 2011 to $87-$114bn in 2016, according to a new report.
The new Green Home Builders and Remodelers Study by McGraw-Hill Construction has revealed that green homes accounted for 17% of the overall residential construction market in 2011; this share of the market is expected to grow to between 29% and 38% by the end of 2016.
McGraw-Hill Construction Industry Insights and Alliances vice president Harvey Bernstein said: "The housing market is critical to the US economy."
"Despite the drastic downturn in housing starts since 2008, green has grown significantly as a share of activity, indicating that the green market is becoming an important part of our overall economic landscape," Bernstein said.
The study states the green building can offer business benefits such as a competitive marketing advantage.
Building green helps 46% of builders and remodelers market themselves during the economic downturn, according to the study and 71% of firms involved in green building also recognised this advantage; while 34% of remodelers expect to be doing mostly green work by 2016, up 150% over 2011 activity levels.
National Association of Home Builders (NAHB) chairman Barry Rutenberg said: "This study demonstrates the phenomenal growth in green building and indicates that we can expect even larger increases in the coming years."
"In a sample of NAHB builder and remodeler members, nearly 90% reported building green at some level. This is a powerful testament to the importance of green home building and transforms the way we think of homes overall," Rutenberg said.
Many builders expect to be dedicated to green building work on over 90% of projects by 2016, while 33% expect to be completely dedicated to green building work in 2016, up from 17% in 2011.
According to the study, 22% of remodelers anticipate that they will be dedicated to green work in 2016, compared to the 8% who reported being dedicated to green work in 2011.
The study also found that 61% of builders and 66% of remodelers think that home buyers will pay more for green homes.
Higher quality and an increase in energy costs are some of the main factors that are expected to help drive the green homes market.
The West Coast region in the US has seen the highest green building growth in the country, while the Midwest’s northern region, west of the Mississippi is second highest and New England ranks third.